In March of the Current Year,Marcus Began Investigating the Possibility

question 92

Multiple Choice

In March of the current year,Marcus began investigating the possibility of opening a specialty clothing store.From March through June,he spent $2,300 on a market survey,$2,700 in consulting fees to find the best location and $3,600 in professional fees setting up an accounting and inventory system.Although he had never run his own business before,on August 1 he opened his doors for business.What is the maximum amount of deduction for the current year attributable to these expenditures?

• A)$0
• B)$5,000
• C)$5,100
• D)$8,600

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Definitions:

Terms Of Service

Legal agreements between a service provider and a user, outlining the rules and guidelines under which the service must be used.

White Settlement

Areas primarily inhabited and established by Europeans or descendants, often in the context of colonial expansion.

Governor Berkeley

A historical figure known for his role as a colonial governor in Virginia, often associated with the governance during periods of early American history.

Free Blacks

African Americans who were not enslaved and lived in the United States before the abolition of slavery.